Query on Accounting Rate Of Return??

Attn: Mr Faiz Ahmed

I am not an expert still lay down

ARR = PAT/ Average Initial Investment

This initial Investment may consist of outflow for Fixed Assets and Working Capital also since working capital is needed in the begining for the project to generate returns.

Initial Working Capital=Initial Investment

In between Flows=changes in working capital

In terminal Flow we have recapture of working capital

Thnx Mr. Sivaram for clearing my doubt.